Fraud, Abuse, and Related Problems

The decentralized and corporate organization of U.S. education, and its tradition of openness, has allowed organizations to provide educational services, or claim to, that are not always legitimate. Both state and federal agencies have recognized this problem, as have private sector associations. It is important, in avoiding illegitimate educational services, to remember that:

U.S. institutions, schools, and other providers are organized and chartered as legal corporations, which means that the laws governing non-profit and for-profit service providers apply to U.S. education;

These incorporation laws often limit the ability of state and federal authorities to distinguish quality providers, since the legally definable and quantifiable characteristics of an education provider often apply to all regardless of quality;

It is for these reasons that accreditation by recognized accrediting associations is considered such an important indicator of legitimacy by U.S. states, the federal government, and other institutions and employers; and

In most U.S. state jurisdictions, falsification of a claim to have studied at or graduated from a recognized school or institution is punishable by revocation of licenses, fines, imprisonment, or a combination.

Unaccredited Status

A U.S. school, institution, or other educational provider is understood to have unaccredited status if it is not accredited by a recognized regional, national, or specialized accrediting association. Entities accredited by recognized associations will be listed on the official web sites of the recognized associations and in their official publications. Authoritative lists of U.S. institutions accredited by recognized accreditors, and therefore recognized as part of the U.S. education system, are published in two places.

Accredited Institutions of Postsecondary Education (AIPE) is the official list of all recognized free-standing institutions and branches accredited by the member associations of the Council on Higher Education Accreditation (CHEA). This publication can be ordered online and is updated annually. (On the Bookstore page, click on Quick Peek By Subject and then select Guides and Directories.)

Federal School Code Search Page (Title IV Code List) provides a searchable database of all the institutions that are approved to participate in federal financial assistance programs for U.S. students. This list differs in detail from the AIPE list because (a) not all accredited or recognized institutions choose to participate; and (b) participation in the student assistance program requires additional undertakings besides accreditation by a federally recognized association.

The above two publications constitute the full, authoritative listing of all recognized U.S. institutions. No other lists are valid for this purpose, including other federal lists. If an institution does not appear in either or both of these lists, then USNEI should be contacted for clarification.

In rare cases, the Secretary of Education has the power to approve an institution that is not accredited by a recognized association to participate in federal assistance programs. Such exceptions are granted if other evidence demonstrates that the institution in question could, if it chose, meet the academic and legal requirements for normal recognition. The majority of the few institutions in this special category are religious institutions that have not sought accreditation or other external regulation for doctrinal reasons, but whose degrees and credits are generally accepted at accredited institutions.

Unrecognized Accreditors

Accrediting associations must apply to become recognized. They are evaluated by the federal government for purposes of federal student assistance program oversight and by CHEA, and ASPA for membership in these national associations. Not all accrediting bodies meet the criteria to become nationally recognized.

Unrecognized accreditors are not valid authorities and the institutions and programs they approve will not meet state or federal standards unless they have other accreditation from a recognized association.

Accredited Distance Degrees and Diploma Mills provides a thorough summary of why accreditation is important and the difference between recognized and unrecognized accreditors.

Accrediting Agencies Not Recognized Under GAAP is a useful list of unrecognized and in some cases fraudulent accrediting associations maintain by Dr. John Bear, a leading authority on academic fraud.

Diploma Mills

The terms "diploma mill" and "degree mill" have no legal meaning, but they have come into widespread use to describe some unaccredited institutions and other educational providers that have been repeatedly denied recognition and/or prosecuted as frauds by state governments. The issue of the proliferation of unaccredited entities is an unfortunate side effect of the globalization and expansion of legitimate educational services. Neither USNEI nor the federal government maintain lists of institutions claimed to be diploma mills. The following resources may assist you in learning more about this subject.

Oregon Office of Degree Authorization: Diploma Mills provides a useful description and warning about diploma mills from a state government perspective.

Oregon Office of Degree Authorization: Unaccredited Colleges provides an example of an official state list of unapproved institutions and the legal reasons, where relevant, for disapproval.

When those ivy-clad towers are nothing but a diploma mill is an online article by Mary Lord of U.S. News and World Report magazine that provides guidance on identifying diploma mills.

Monitoring Activities

ARNet Excluded Parties List is a searchable database of all contractors and non-contractors that have been barred from doing business with the government. It is searchable by agency and code, and includes educational providers among many other categories of corporations.

Better Business Bureaus provide extensive information and searchable databases about consumer protection, including diploma mills and other educational frauds. If you know the location of a suspicious entity, you can contact that Better Business Bureau office to find out if they have information on it. Try:

Diploma Mills on the Internet

Career Training Schools

BBB Offices Online

Locate a Specific Bureau